EC 1 - ASSIGNMENT 1 MBA ZC416 – MANAGERIAL ECONOMICS COACH: MONIKA GUPTA PARTICIPANTS : Sr. No. BITS ID NAME 1. 2017HB79069 MAHESH NANDKISHOR BIHANI 2. 2017HB79011 KIRAN DHANANJAY SHEWALE 1. CONTENTS : Sr. No. Description Page No. 1. Title page & Contents 1 2. Assignment: Problem Statement 2 3. Scope 2 4. Objectives 3 5. Introduction 3 6. Collusion & it’s Types 4 7. Facts, Figures & Data analysis 5 - 6 8. Key revealing 7 - 8 9. Implications of Collusion & Key Takeaway 9 10. Bibliography 10 2. PROBLEM STATEMENT : Write and prepare a case let of an Industry or a firm of your choice and analyze any one of the following in detail. The case and analysis of the any one of the following should be based on the facts, figures, …show more content…
OBJECTIVES: To understand the collusion activity in cement industry by applying the various theories and concepts taught and comprehended in the Managerial Economics course. 5. INTRODUCTION The manufacture and use of cement is linked to infrastructure development and the growth of economies. As a key building material, the price of cement contributes directly to the cost of construction and building projects. In India it includes state housing projects and basic infrastructure for the poor. Access to cheaper inputs to the construction sector relies to a large extent on the competitive environment prevailing between producers. This can be deformed significantly by disruptions in the competitive process such that the levels of prices and output (and supply and demand) do not reflect those which would affect in more competitive market conditions resulting in losses. These distortions can effect of coordination between firms and unilateral abuses of positions of market power. It is especially concerning that anticompetitive behaviour has been shown to be present across various building materials markets in
It is a well-known fact that every firm wants to be successful in its business. Sometimes it is difficult to decide what kind of actions to take in order to achieve it. Especially, it is hard on oligopoly market because this is one of the most complicated market structures. Oligopoly includes many models and theories such as duopoly where are just two producers and which pricing decisions remind monopoly, kinked demand curve, which decreases economic profit, and cartel, which brings economic profit just for the short-run. However, to be a successful oligopolistic firm in the long run, managers should include in the planning process such economic theories and models as producer interdependence, the prisoner’s dilemma, price leadership, nonprice adjustments, and correct using of barriers to entry.
The Political, Social, and Legal Environment of Business. Case Study Analysis: Union Carbide Corporation and Bhopal. A single slip in action may cause lasting sorrow. A slight mistake in operation at a Union Carbide pesticide plant in Bhopal, India, caused a lot of deaths and injuries. What a tragedy it is.
Summary: I have mentioned the different types of market and the two main factors which are supply and demand, I have wrote in detail what they are and how they affect construction. Also I have mentioned the interests and inflation charge and how they affect the economy and the construction industry. In task two I have mentioned the different problems relating to economics which includes the shortages and scarcity. I have also mentioned the different thinking’s of the human nature and what the factors are. Finally I have spoken about the different solutions and how it has affected construction.
The major issues facing the company comprises of there being multiple businesses with different demands. There are separate levels of performance and success as well as growth chances for each of the sector and the firm needs to tackle with issues in each of these divisions (Dube, J.P., 2004).
The company that I chose to do my case analysis on is Dell computers. Many companies start out as very aggressive but get crashed either by its competitor or by poor strategic management. Dell Computer's entered the market with strong strategic vision and stronger strategic management. One of the biggest strengths that Dell has is its simple business concept which is building personal computers built to order and selling it directly to its customers. This simple notion gives Dell several competitive advantages over its competitor. One it is bypassing distributors and retail dealers which eliminated the markups of resellers, and two building or order greatly reduced the costs and risks associated with carry large stocks of unneeded inventory. As a major competitor in the personal computer market, Dell's focus on efficiency of manufacturing, and a direct marketing approach, that allows the company to continue gaining ground on the competition.
Construction conflictand disputes are common between the parties involved incontract works. Conflicts may arisewhenissues are not addressed appropriately at the initial stage of contract procurement. For example; such issues would include overlooking clauses of construction risks, dissatisfaction overproject decisionsand lack of technical ability in managing contracts. Conflicts may also arise due to ineffective management in the processes of contracts, unfaithful ethics of professional people involved in the contract and the use of inappropriate contract procurement methods. In such cases, conflict of interest among the parties could abrupt to construction disputes.
To succeed against the competition, the UK construction industry must deliver quality products and services at acceptable costs as a matter of course. But increasingly its stakeholders all those it does business with or who are affected by its operations expect more from the industry in terms of how it operates and its overall impact on society.
Q1. Using the Mabati Rolling Mills Case Study, explain the various sources of funds as discussed by the management of Mabati Rolling Mills. Give the advantage and disadvantage of each source.
ACC Limited is India’s foremost manufacturer of cement and ready mixed concrete with a countrywide network of factories and sales offices. It is amongst the first companies in India to include environmental protection as a corporate commitment. It has been considered as a pioneer and leader in cement and concrete know-how, winning awards for best practices in environment management and for demonstrating good corporate citizenship. The quality of ACC’s products and customer centric services make it the most preferred cement brand in the industry and enjoys a high degree of brand equity in the Indian market. The Indian cement industry is the 2nd largest market after China accounting for about 8% of the total global production. The Indian housing
Identify the potential risks which affect the company and manage these risks within its risk appetite;
A Large proportion of the construction cost is materials, so it may obtain great economic benefit if the material cost could be reduced by optimizing. Therefore it is necessary to control the main material cost of construction projects strictly. The main materials means that the material is less in variety while large quantity funds needed, such as steel bar, cement, fine aggregate and coarse aggregate and higher-value equipment etc, which generally account for total funds at 60% to 80%. Especially the steel material in construction has a so high price and great demand that optimization is worth and in need.
The second market structure is a monopolistic competition. The conditions of this market are similar as for perfect competition except the product is not homogenous it is differentiated; thus having control over its price. (Nellis and Parker, 1997). There are many firms and freedom of entry into the industry, firms are price makers and are faced with a downward sloping demand curve as well as profit maximizers. Examples include; restaurant businesses, hotels and pubs, specialist retailing (builders) and consumer services (Sloman, 2013).
The type of firm we are going to investigate in this assignment is an oligopolistic firm. The essence of an oligopolistic market is that here are only a few sellers. As a result, the actions of any one seller in the market can have a large impact on the profits of all the other sellers. Oligopolistic firms are interdependent in a way that competitive firms are not. The company we chose to study is Petronas.
Rama satyanrayana. & Jayaprakash. R., (2012). Labour Welfare Measures In Cement Industries In India: (A Case Of KCP Limited, Cement Division, Machela Andhra Pradesh). International Journal of Physical and Social Sciences. Retrieved from http://www.ijmra.us/project%20doc/IJPSS_JULY2012/IJMRA-PSS1376.pdf
The construction industry is one of the main activities in the economy. It affects and is affected by the GDP of the country (Enshassi et al., 2007), policies of the government and regulations have a strong influence on the business (Öcal et al., 2007). The Industry of construction is at danger since there are a lot of outside and inside factors disturbing the industry. Consequently, we have to deal with the ambiguity in this industry management (Enshassi et al., 2007).